Re:The college debt crisis is worse than it seems
by dsr_ on Monday May 23, 2016 @03:29PM
(#11756221)
The problems with student debt are (a) it is not affected by bankruptcy and (b) the Federal government guarantees it, either via the pre-2010 program or the subsequent direct loan program.
The result is that colleges and universities do not experience meaningful declining rates of acceptance (demand) when they raise their prices.
One alternative would be to stop government support of loans entirely. That would tend to re-price college at a level closer to its actual value.
Another alternative would be to nationalize higher education.
The result is that colleges and universities do not experience meaningful declining rates of acceptance (demand) when they raise their prices.
One alternative would be to stop government support of loans entirely. That would tend to re-price college at a level closer to its actual value.
Another alternative would be to nationalize higher education.